Figure 13-1
-Refer to Figure 13-1. When disposable personal income is $2,000 billion, consumption is
A) $400 billion.
B) $1,000 billion.
C) $1,200 billion.
D) $1,600 billion.

Question

Figure 13-1 
-Refer to Figure 13-1. When disposable personal income is $2,000 billion, consumption is
A) $400 billion. 
B) $1,000 billion. 
C) $1,200 billion. 
D) $1,600 billion.

Quizplus · Accepted Answer

The consumption function intersects the 45-degree line at disposable personal income of $1,200 billion. Therefore, when disposable personal income is $2,000 billion, consumption is $1,200 billion.

Figure 13-1 -Refer to Figure 13-1. When Disposable Personal Income Is $2,000